The Singapore government is looking to release a site in the eastern part of the island for a new not-for-profit private acute hospital, in what would be the first land release for private hospitals in nearly 20 years.

The land will be offered via a fixed-price tender. Under this approach, bidders will be evaluated on qualitative criteria including their care model, cost efficiency, approach to recruiting and developing manpower, and their commitment and policies towards affordable healthcare, said Health Minister Ong Ye Kung.

He announced the plans on April 9 at an anniversary event for Mount Alvernia Hospital — currently the only not-for-profit private acute hospital in Singapore.

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The proposed hospital would be able to house 300 to 400 beds, and provide more lower-cost private healthcare options, media reports quoted Ong as saying.

To ensure lower costs, the government aims to stipulate requirements in the tender documents, including the fixed-price model. It will also impose restrictions on bill sizes, capping them at a certain percentile of the market.

"There are still a few important issues we have to address, and I hope we are able to address them and arrive at a decision in the second half of the year, to launch the tender," he added.

The planned not-for-profit private hospital will build on the authorities’ efforts to rein in private healthcare costs and rising insurance premiums.

Singapore’s last private hospital land tender was held in 2008. On the site, the 333-bed Mount Elizabeth Novena Hospital opened in 2012 at a cost of $2 billion, of which about $1.25 billion had gone into the land acquisition, The Straits Times reported.